Mining giant BHP has formed an exploration alliance with Kingsrose, focusing on the search for nickel and copper in Norway and Finland.

The alliance will be executed in three stages, with BHP solely financing up to $20m for the project generation phase for up to four years across belt scale areas of interest in Norway and Finland for the exclusive right to select targets to become Defined Projects.

In the earn-in phase, BHP must solely fund up to an additional $36m over seven years for each Defined Project, potentially earning up to a 75% interest.

Following this, a joint venture (JV) may be established, with funding on a pro-rata basis. If a party's interest falls below 10%, it will convert to a 2% net smelter royalty.

Kingsrose will manage the alliance during the initial phases and charge a management fee.

Both parties have mutual rights of first refusal regarding the sale of any interest in the JV company or dilution royalty.

The agreement does not include Kingsrose’s independent projects, namely Penikat and Råna.

BHP Exploration vice-president Sonia Scarcelli said: “BHP developed the Xplor programme to address the challenge of declining global discovery rates, by building an industry-first platform for cross-industry collaboration, talent sharing and lifting of exploration operating standards.

“BHP is pleased to continue its collaboration with Kingsrose, who represent a leading explorer both technically and in their responsible approach to mineral exploration.”

Kingsrose has identified two mineral belts in Norway and Finland with significant exploration potential, securing more than 3,800km² of licences.

In Norway, Kingsrose's licences span more than 200km of greenstone belt geology, an extension of the Central Lapland Greenstone Belt (CLGB) in Finland, known for significant gold and nickel-copper-platinum group element deposits.

Kingsrose managing director Fabian Baker said: “Following our participation in the inaugural BHP Xplor programme, it is incredibly exciting to be announcing these Exploration Alliances with BHP, one of the world’s leading mining companies.

“The terms of these alliances are industry-leading in how they foster collaboration and the opportunity for mutual value creation between a major and junior company.

“The exploration tenements held by Kingsrose in Norway and Finland represent a rare exploration opportunity with respect to their scale and prospectivity for discovery.”